A multinational group with a Greek subsidiary facing mounting debt discovers that its options under Greek law are broader than expected – but only if management acts before the window closes. Greek insolvency legislation has undergone deep reform over the past decade. Restructuring tools that were once theoretical are now actively used by courts and creditors. Delay, however, erodes those options quickly. Once the statutory insolvency threshold is crossed without a filed plan, the route shifts from negotiated rescue to contested court proceedings – with significantly higher costs and uncertain outcomes.
Corporate restructuring in Greece is governed by a reformed body of insolvency legislation that offers international groups several distinct pathways: out-of-court workouts, judicial restructuring plans, and formal insolvency proceedings with an administrator. The applicable procedure depends on the debtor's financial condition, the composition of its creditor base, and whether the centre of main interests of the Greek entity is confirmed in Greece. Proceedings are conducted before the competent Greek civil courts, and a restructuring plan requires creditor approval according to class-based voting thresholds before receiving court confirmation.
This guide explains each available procedure step by step, identifies the documentary requirements, maps common errors by foreign-based management teams, and provides a decision checklist for selecting the right path.
The Greek restructuring regime: available procedures and when each applies
Greek insolvency legislation offers three primary instruments for distressed businesses. Each has distinct applicability conditions, procedural steps, and strategic implications.
Out-of-court workout (extrajudicial mechanism) is available to businesses that meet specific debt thresholds and hold liabilities owed to both financial institutions and the Greek state. The process is administered through a designated digital platform. Creditors representing the required majority must vote in favour within a set period – typically sixty days from initiation. The mechanism produces a binding restructuring agreement without the need for a court hearing. It is the fastest route when creditor relationships are intact and the debt profile is concentrated among institutional lenders.
This path applies only if: the debtor is not already subject to formal insolvency proceedings. the outstanding liabilities to participating creditors exceed the prescribed minimum threshold. and the debtor can demonstrate basic operational viability through recent financial statements.
Judicial restructuring plan (ptocheftiko sxedio anapyxis – judicial rehabilitation plan) is filed before the competent court of first instance. It requires the debtor to submit a detailed restructuring plan accompanied by supporting financials, a creditor list, and a schedule of proposed treatment per creditor class. The court appoints a rapporteur judge and sets a date for the creditors' meeting. At that meeting, creditors holding proof of debt – verified claims submitted in the prescribed form – vote by class. Secured and unsecured creditors vote separately. The plan requires a qualified majority in each class or, in some configurations, a cross-class cram-down confirmed by the court.
The timeline from filing to court confirmation typically runs four to eight months for uncontested proceedings. Contested plans – where dissenting creditor classes challenge the valuation or treatment of claims – can extend to twelve months or beyond.
Formal insolvency proceedings involve the appointment of an administrator (sindikos – court-appointed insolvency official) who takes over management of the debtor's assets. The administrator's primary duty is to assess whether the business is capable of restructuring or whether liquidation serves creditor interests better. A liquidator may subsequently be appointed if restructuring proves unviable. Formal proceedings are the appropriate instrument when management has lost creditor trust, when asset protection requires immediate court protection, or when the debtor's centre of main interests requires alignment with EU cross-border insolvency rules.
Step-by-step process: from filing to plan confirmation
The following sequence applies to the judicial restructuring plan – the most commonly used instrument by international groups with Greek operating entities.
Step 1 – Financial assessment and solvency analysis (weeks 1–3). Before any filing, management must obtain a current balance sheet, a cash flow projection, and an independent assessment of asset values. Greek courts require evidence that the proposed plan offers creditors a better outcome than liquidation. Without this baseline, a plan will not survive judicial scrutiny.
Step 2 – Creditor mapping and claim verification (weeks 2–4). All creditors must be identified and their claims quantified. This includes trade creditors, financial institutions, tax authorities, and social security funds. Each creditor's claim must be categorised as secured, preferential, or unsecured. The proof of debt process requires each creditor to submit a formal claim with supporting documentation. Foreign parent companies holding intercompany claims must verify these in the same manner as third-party creditors.
Step 3 – Drafting the restructuring plan (weeks 3–6). The plan must specify the proposed treatment of each creditor class, the timeline for repayment or debt conversion, and the operational measures that will restore viability. Greek insolvency legislation requires the plan to include a comparative analysis showing that creditors receive at least as much as they would under liquidation. Plans that propose debt-to-equity conversions must address corporate governance changes for the restructured entity.
Step 4 – Filing with the competent court (week 6–7). The debtor's management or its authorised representative files the plan with the court of first instance that has territorial jurisdiction over the debtor's registered seat. The filing fee is based on the scale of proceedings. The court sets a date for the creditors' meeting – usually four to eight weeks after filing. All creditors are notified individually and by publication in the relevant legal gazette.
For a detailed overview of formal insolvency and restructuring proceedings in Greece, including the interaction between judicial plans and enforcement actions, see the bankruptcy and restructuring services page for Greece.
Step 5 – Creditors' meeting and voting (weeks 10–14). The creditors' meeting is presided over by the court-appointed rapporteur. Each creditor holding a verified proof of debt is entitled to vote. Voting is conducted by class. The plan is approved if the required majority – calculated by value, not by number – is reached in each class or if the court applies a cram-down. Creditors who do not submit a proof of debt in time lose their right to vote, though not necessarily their underlying claim.
Step 6 – Court confirmation (weeks 14–20). Following approval at the creditors' meeting, the court reviews the plan for legal compliance and fairness to dissenting creditors. Confirmation is not automatic. The court may reject the plan if it finds that a dissenting class would receive less than its liquidation value. Once confirmed, the plan binds all creditors – including those who voted against it – provided the applicable class thresholds were met.
Step 7 – Implementation and monitoring. Implementation begins immediately upon confirmation. An administrator may be retained in a supervisory capacity during the implementation phase. Failure to meet plan milestones triggers re-opening of insolvency proceedings in most cases. Management must file periodic compliance reports with the court during the implementation period.
To receive an expert assessment of your restructuring options in Greece, contact us at info@ferrazwhitmore.com.
Documentary checklist and common errors by foreign clients
International groups consistently underestimate the documentary burden of Greek restructuring proceedings. The following checklist reflects the minimum required for a judicial plan filing.
- Audited financial statements for the most recent two financial years
- Current management accounts dated within sixty days of filing
- A certified creditor list with claim amounts, classification, and supporting contracts or invoices
- Proof of debt forms for each creditor, prepared in the prescribed format under Greek insolvency legislation
- Asset valuation report prepared by a certified appraiser
A common error among foreign management teams is treating the creditor list as an administrative formality. In practice, omitting a creditor – even unintentionally – can result in that creditor challenging the confirmed plan after the fact. Greek courts have held that creditors not properly notified retain the right to contest their treatment. This creates post-confirmation litigation risk that undermines the entire restructuring.
A second recurring mistake involves intercompany claims. Parent companies and affiliates within the same group hold claims against the Greek entity – typically loans, deferred management fees, or unpaid invoices. Foreign management teams sometimes assume these claims can be subordinated informally or left off the creditor list. Under Greek insolvency legislation, intercompany claims must be formally classified. Failure to do so exposes the plan to challenge by independent creditors who argue the plan inflates recovery for related parties.
A third error concerns the proof of debt timeline. Foreign creditors – particularly trade creditors in non-EU jurisdictions – frequently miss the deadline for submitting proof of debt. Once the deadline passes, late-filed claims require a separate court application to be included. This delays the creditors' meeting and adds procedural cost.
Corporate disputes connected to restructuring – such as minority shareholder challenges to debt-to-equity conversions – require separate legal management. For guidance on shareholder and governance disputes arising in distressed Greek companies, the corporate disputes service page for Greece sets out the relevant procedural options.
A non-obvious risk in cross-border group restructurings involves the interaction between the Greek proceedings and insolvency proceedings opened in another EU member state. Under EU cross-border insolvency rules, the centre of main interests determines which jurisdiction's proceedings take primacy. If the Greek subsidiary's management is effectively exercised from a foreign parent's headquarters, creditors may argue that the centre of main interests is outside Greece. A successful challenge on this basis can result in the Greek proceedings being recharacterised as secondary proceedings – limiting the tools available and introducing conflicting creditor claims from the main proceedings jurisdiction.
Legal fees in Greece for restructuring proceedings start from several thousand euros for straightforward out-of-court workouts. Complex judicial plans with multiple creditor classes involve legal and advisory costs in the range of tens of thousands of euros. Government filing fees and court costs are assessed based on the scale of the proceedings.
Self-assessment checklist: selecting the right restructuring path
Before initiating any procedure in Greece, management should verify the following conditions.
The out-of-court workout applies if: the debtor's debts exceed the prescribed minimum threshold. a meaningful proportion of total debt is owed to financial institutions or public creditors. the business has been operationally active and can demonstrate short-term cash generation. and management retains the confidence of its major creditors.
The judicial restructuring plan applies if: the creditor base is diverse and includes trade creditors who would not participate in an informal process. the debtor requires court protection against enforcement actions during negotiations. the plan involves significant debt restructuring. Debt-to-equity conversion. Alternatively, asset disposals. or the group's cross-border structure requires a court-confirmed plan for recognition in other jurisdictions.
Formal insolvency proceedings with an administrator apply if: management has lost effective control of the business. creditors have already commenced enforcement actions. the debtor's cash position does not permit continued operations without immediate court protection. or the group requires the appointment of an independent administrator to restore creditor confidence.
Before filing, verify: that the Greek entity's centre of main interests is confirmed in Greece. that all creditor claims have been identified and classified. that a viability analysis supports the "better than liquidation" standard. that intercompany claims have been formally documented. and that management has authorised the filing through a valid corporate resolution.
If the debtor's financial position deteriorates further after a plan is filed but before confirmation, the matter may shift from restructuring to formal insolvency proceedings. The trigger is typically the debtor's inability to meet current obligations during the court process. At that point, the administrator takes over asset management, and the restructuring plan is superseded by the formal insolvency procedure. Identifying this inflection point early – and building contingency steps into the strategy – is one of the most consequential decisions in Greek restructuring practice.
For a comparative perspective on restructuring procedures across Iberian and Southern European jurisdictions, the guide to corporate restructuring in Portugal provides a useful parallel analysis.
To explore the most effective restructuring path for your Greek operations, schedule a consultation at info@ferrazwhitmore.com.
Frequently asked questions
Q: How long does a corporate restructuring process typically take in Greece?
A: A negotiated restructuring plan in Greece commonly takes between six and eighteen months from filing to court confirmation. Contested proceedings or complex creditor compositions can extend this timeline significantly. Early engagement of an administrator and thorough preparation of financial documentation shortens the process considerably.
Q: Can a foreign parent company initiate restructuring for its Greek subsidiary?
A: Yes. A foreign parent may file on behalf of its Greek subsidiary, provided the Greek entity holds its centre of main interests in Greece under applicable insolvency legislation. The filing must be made before Greek courts, and engaging a lawyer in Greece with cross-border restructuring experience is required to manage procedural requirements. Foreign group structures often need to align the Greek insolvency proceedings with parallel proceedings in other jurisdictions.
Q: Is it a misconception that Greek courts always prefer liquidation over restructuring?
A: That view is outdated. Greek insolvency legislation has been substantially reformed to favour restructuring and business rescue over liquidation. Courts now actively support restructuring plans where creditors representing the required majority consent and the plan demonstrates long-term viability. Liquidation remains available but is treated as a last resort when restructuring is not commercially feasible. Working with a law firm in Greece that understands the current judicial approach is essential to presenting a plan that courts will confirm.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our insolvency and restructuring practice assists international groups with corporate restructuring in Greece and across Southern and Eastern Europe, combining Portuguese civil law expertise with English common law tradition to deliver cross-border solutions. We advise on judicial restructuring plans, out-of-court workouts, administrator appointments, and cross-border insolvency coordination for multinational groups operating in civil law systems. Our attorneys have advised on restructuring and insolvency proceedings before Greek courts and coordinated parallel proceedings across EU member states. The firm is a member of leading international legal associations and participates in cross-border restructuring practice groups focused on European insolvency law. To discuss your situation in Greece, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.